How do purchases work for my customers?
Customers do NOT need an account to buy on Gumroad
A customer can purchase on Gumroad with or without an account. If they choose to create an account, they can do so before or after their purchase. Having an account allows them to access their purchases through their Gumroad Library anytime.
We identify customers based on the email address they enter at checkout. If they have an account, their products show up in their library. If not, they will always be able to access their content through the link in their receipt.
Sometimes they will be asked to re-enter their email address. This is an extra layer of security, making sure your product is only available to the one who bought it.
Receipts and Invoices
After purchases, your customer gets a receipt with the download link to your product. The receipt will also hold a license key, if you create license keys for one of products.
If they didn't get their receipt, please refer to this article.
They can generate their own invoices through a button at the bottom of their receipt:
VAT for your customers
If they have been charged VAT, they will see it listed on their invoice. If they are a business and have a valid VAT ID, they will be able to ask for a VAT refund when they generate their invoice. All they have to do is add they VAT ID number and we will refund them the VAT.
If they are not from the EU, or if our system couldn't detect which country your customer was from, they will not see the VAT listed on their invoice. It's then not possible to ask for a VAT refund, since they didn't pay for VAT.
How do payments made via credit/debit cards work?
Customers can pay with various credit cards on Gumroad, either by directly entering their cards, or using Apple Pay or Google Pay. They have the option to save their card in their Gumroad account, if they have one. We automatically charge VAT or AU GST, if needed, and the money without the VAT will be added to your balance. (We remit VAT for you, so you never have to deal with this on Gumroad)
For an overview of which cards we accept on Gumroad, go here. To process payments with credit cards, we use the payment processor Stripe. Credit card sales will be added to your balance and are paid out on Fridays.
How do payments made through PayPal work?
Customers can also choose to pay with PayPal. Again, we will add VAT to this purchase if the customer is from the EU. We will remit this for you and the VAT will not touch your accounts.
For PayPal payments from customers, we use PayPal Connect. Sales made through PayPal will be paid out to your PayPal account, directly. For this to work in your account, you have to connect PayPal Connect, once and only once, in your "payments" settings.
In your PayPal account, you will see a "partner fee" line for every PayPal Connect sale. This is our fee that we add for every sale you make. It also includes any VAT if that has been charged, which - as stated above - is remitted for you.
You will see your PayPal Connect sales on your balance page. There is a line in your balance called "PayPal Payouts." This money has already been paid out to you, so it does not count towards your payouts on Fridays.
If you have not connected PayPal Connect, your customers will not be able to pay via PayPal.
You customer will get a receipt with the download link, and will appear in your customer dashboard. Please be aware that the email address the customer uses to pay for the product on Gumroad may be different from the email address they use for their PayPal.
Why do purchases fail?
There are instances where a purchase is attempted and fails. This can happen for multiple reasons, but:
The most common reasons are:
- Customers do not have enough funds on their card.
- Their bank declines the payment. In this case they need to ask their bank to "whitelist" Gumroad so a payment can be made.
- Their browser or IP address is throwing up red flags with our purchase system. They should try purchasing from a different browser, device, or network connection in such cases.
How can I make a test purchase on one of my own products?
Sometimes you want to see how a purchase goes and how your files are delivered to your customers. We get it! First, a word of caution: please don't actually pay for your own products! As logical as this type of action is, our payment processors will see this as a type of "fraud."
So, to enable you to test out purchases on your own products, we have created a nifty Test Purchase function in Gumroad that you can read about in detail here: Testing a purchase / Downloading your own files
If you want to see Gumroad through the eye of your customer, then consider getting some of our free demo products here. They will be added to your library and you can get a feel for the customer journey.